Threats to the growth of the drone industry

Cyber-attacks, reckless pilots and privacy breaches are fundamental threats to the drone industry, warns a new report published by Lloyd’s, the specialist insurance and reinsurance market.Global expenditures on remotely piloted aircraft (RPA) — also known as drones and unmanned aerial systems — is expected to double to $91 billion in the next 10 years, according to the report.

However, concerns around safety, security and surveillance need to be considered by manufacturers and users of this technology, says Lloyd’s new report, “Drones Take Flight.”

The study highlights five risks that it says could harm the sector’s future growth. Of these, privacy infringement is cited as the biggest most significant concern, as well as the carelessness of drone operators and the vulnerability of the drones themselves to cyber-attacks.

Another key concern highlighted in the report is the regulatory environment, which is developing but is not yet harmonized across international jurisdictions. In addition, because of the rapid and uneven growth of the industry, it is proving difficult for regulators to provide strong rigorous oversight without technological support to track and monitor use.

Effective airspace control and collision avoidance technology, the report contends, will be key requirements for the insurance of RPAs operating in busy airspace.

As a result, insurers are likely to seek greater risk mitigation measures from RPA operators. These could include training and accreditation, strengthening cyber security and the completion of privacy impact assessments.

“Drones have significant potential but at the same time they are a controversial emerging technology,” said Nick Beecroft, Lloyd’s Manager of Emerging Risk & Research. “As the market for drones continues to grow, so does the interaction of risk exposures. Manufacturers, operators and regulators will need to work together, on a global basis, to understand exposures and ensure this technology is used safely and responsibly.”

About General Aviation News Staff

Comments

I don’t think there’s anything to worry about. Drones aren’t going anywhere. The market has just grown so much so quickly that they haven’t had time to get the needed regulations in place. Once they get it all figured out, it’ll be smooth sailing.

The incredibly screwed up FAA project called NextGen has no provisions for handling drones. It is already obsolete for its intended purpose and didn’t contemplate drones since there were none when it was conceived. NextGen, based primarily on a system known as ADS-B, is a great concept and should be brought up to date and used for drones as well as all other aircraft.

If drones were required to utilize ADS-B Out their positions would be known and responsible operation would be assured. As it is now they cannot be seen by air traffic radar and are an incredible hazard to regular aircraft.

If they were required to use ADS-B Out, the cost of that equipment, which is no more complex than a typical smart phone, would drop to almost nothing.

Unless some leadership is shown by someone, NextGen will go into service with Lockheed getting billions of cost overrun payments, and then get more billions to fix it. As it is currently designed, the data stream is completely unencrypted and can be spoofed easily by most hackers, and it is already incapable of handling expected volumes.

Google is ahead of the game with their design of an ADS-B like capability. Drones must be forced to broadcast their ID and positions or they will never be safe around airliners and other aircraft. Unless they are forced to broadcast their ID there will never be any meaningful way to handle irresponsible operation.

I am a lifelong pilot, flight instructor, and aircraft owner, and I don’t want one of these coming through my windshield. Unless someone takes on Lockheed and the FAA we are looking at a huge dangerous mess. Under Obama the FAA has basically collapsed in doing its normal duties.